6 months ago
Businesses that not take the full Bounce Back Loan the first time around will be allowed to top up their loan to the full £50,000.
The government has said that those firms that did not draw down the maximum allocation from their banks will now be able to access all of it to help them through the second lockdown.
The Bounce Back Loans are fully backed by the government and are available up to a maximum of £50,000 or 25 per cent of turnover.
The Treasury said firms that had borrowed less will be allowed to top up the extra cash by going back to their banks.
Many businesses did not draw down the full amount. Most car dealers did, though, and many have used it to fund stock during the restart in the summer.
Even though he was eligible for up to £50,000, Alan Lambert, from north London, only took a £35,000 loan for one of his businesses early in the pandemic.
‘I took what I needed in May, but now in November there is no more help for me,’ he told the PA news agency.
In July he asked his bank for a top-up on the loan, but it said he would have to pay back the Bounce Back Loan and then apply for a new one.
‘Just a simple top-up of £10,000 will keep my business going through Christmas,’ he said.
More than 1.3m businesses have so far been given access to vital cash through the Bounce Back Loan Scheme, borrowing over £40bn.
It has been vital in propping up some businesses, and many would have been likely to close their doors without the scheme.
However, the process has proven challenging for many small business owners.
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